0001558370-17-007581.txt : 20171026 0001558370-17-007581.hdr.sgml : 20171026 20171026161607 ACCESSION NUMBER: 0001558370-17-007581 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20171026 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20171026 DATE AS OF CHANGE: 20171026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AV Homes, Inc. CENTRAL INDEX KEY: 0000039677 STANDARD INDUSTRIAL CLASSIFICATION: OPERATIVE BUILDERS [1531] IRS NUMBER: 231739078 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07395 FILM NUMBER: 171156486 BUSINESS ADDRESS: STREET 1: 8601 N. SCOTTSDALE RD. STREET 2: SUITE 225 CITY: SCOTTSDALE STATE: AZ ZIP: 85253 BUSINESS PHONE: 4802147400 MAIL ADDRESS: STREET 1: 8601 N. SCOTTSDALE RD. STREET 2: SUITE 225 CITY: SCOTTSDALE STATE: AZ ZIP: 85253 FORMER COMPANY: FORMER CONFORMED NAME: AVATAR HOLDINGS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: GAC CORP /DE/ DATE OF NAME CHANGE: 19801023 FORMER COMPANY: FORMER CONFORMED NAME: GENERAL ACCEPTANCE CORP DATE OF NAME CHANGE: 19710208 8-K 1 f8-k.htm 8-K avhi_Current_Folio_8K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

 

 

Date of Report (Date of Earliest Event Reported):

October 26, 2017

 

AV Homes, Inc.

 


 

(Exact name of registrant as specified in its charter)

 

 

 

 

Delaware

001-07395

23-1739078

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

 

 

8601 N. Scottsdale Rd. Suite 225

Scottsdale, Arizona

 

85253

(Address of principal executive offices)

 

(Zip Code)

 

 

Registrant's telephone number, including area code:

(480) 214-7400

 

Not Applicable

Former name or former address, if changed since last report

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

 

 

 


 

Item 2.02  Results of Operations and Financial Condition.

 

On October 26, 2017, AV Homes, Inc. (the “Company”) issued a press release announcing its results for the quarter ended September 30, 2017. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

 

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01  Financial Statements and Exhibits.

 

(d) Exhibits

 

 

 

 

Exhibit
No.

    

Description

 

 

 

99.1

 

Press release dated October 26, 2017.

 

2


 

Exhibit Index

 

 

 

 

Exhibit
No.

    

Description

 

 

 

99.1

 

Press release dated October 26, 2017.

 

3


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

AV Homes, Inc.

 

 

Date: October 26, 2017

By:

/s/ Roger A. Cregg

 

Name:

Roger A. Cregg

 

Title:

President and Chief Executive Officer

 

 

(Principal Executive Officer)

 

4


EX-99.1 2 ex-99d1.htm EX-99.1 avhi_Ex99_1

Exhibit 99.1

AV Homes Reports Results for Third Quarter 2017

 

Third Quarter 2017 Highlights - as compared to the prior year third quarter (unless otherwise noted)

 

·

Total revenue increased slightly to $205.7 million

·

Homebuilding revenue was $201.7 million, comparable to prior year third quarter

·

Homes delivered decreased 4.3% to 608 units

·

Average selling price for homes delivered increased 4.4% to $332,000 per home

 

Scottsdale, AZ (October 26, 2017) – AV Homes, Inc. (Nasdaq: AVHI), a developer and builder of residential communities in Florida, the Carolinas and Arizona, today announced results for its third quarter ended September 30, 2017.  Total revenue for the third quarter of 2017 increased slightly to $205.7 million, from $205.4 million in the third quarter of 2016.  Net loss and diluted loss per share was $1.5 million and $0.07 per share, respectively, which included a pre-tax charge of $6.9 million ($4.2 million after-tax, or $0.19 per share) related to redemption costs for the remainder of the Company’s 8.50% Senior Notes that were refinanced with new 6.625% Senior Notes.  Net income and diluted income per share for the third quarter 2016 was $11.9 million and $0.49 per share, respectively, and included only a nominal income tax provision due to the reversal of the valuation allowance of the deferred tax assets in 2016. 

 

Roger A. Cregg, President and Chief Executive Officer, commented, “We continue to remain on target to achieve our full year 2017 performance targets, as evidenced by the reaffirmation of our guidance again this quarter, despite the interruption by hurricane Irma in our Florida markets.”  Mr. Cregg continued, “We remain focused on sourcing new land opportunities for communities to provide future growth and performance in the operations.  Over the last three quarters, we approved, or have under contract, more than 3,000 lots, as we picked up the pace of activity in all of our current markets.  Overall, our outlook continues to remains positive, supported by a favorable macroeconomic and housing environment.”

 

Homebuilding revenue remained comparable to the prior year third quarter with the 4.4% increase in the average selling price offsetting a 4.3% decrease in units primarily due to lower community counts in Florida and Arizona.  During the third quarter of 2017, the Company delivered 608 homes, compared to 635 homes delivered during the third quarter of 2016, and the average unit price per closing improved to approximately $332,000 from approximately $318,000 in the third quarter of 2016 due to price increases and improvements in the mix of homes sold.

 

1


 

Homebuilding gross margin was 16.4% in the third quarter of 2017 compared to 18.8% in the third quarter of 2016 with comparable margins year over year in the Arizona market being more than offset by gross margin declines in the Florida and Carolina markets.  Homebuilding gross margin is inclusive of the impact associated with the expensing of previously capitalized interest of 2.6% and 2.7% in the 2017 and 2016 periods, respectively.

Total SG&A expense as a percent of homebuilding revenue was 13.4% in the third quarter of 2017 compared to 12.6% in the third quarter of 2016.  Homebuilding SG&A expense as a percentage of homebuilding revenue was 11.1% in the third quarter of 2017 compared to 10.8% in the third quarter of 2016.  Corporate general and administrative expenses as a percentage of homebuilding revenue were 2.3% in the third quarter of 2017 compared to 1.8% in the same period a year ago. 

 

The number of new housing contracts signed, net of cancellations, during the three months ended September 30, 2017 was 551 units, compared to 572 units during the same period in 2016.  The average sales price on contracts signed in the third quarter of 2017 increased 1.9% to approximately $330,000 from approximately $324,000 in the third quarter of 2016.  The aggregate dollar value of the contracts signed during the third quarter was $182.0 million, compared to $185.4 million during the same period one year ago.  The backlog value of homes under contract but not yet closed as of September 30, 2017 decreased 4.0% to $333.2 million on 1,013 units, compared to $347.1 million on 1,081 units as of September 30, 2016.

 

The Company will hold a conference call and webcast on Friday, October 27, 2017 to discuss its third quarter financial results.  The conference call will begin at 8:30 a.m. EDT.  The conference call can be accessed live over the telephone by dialing (877) 643-7158 or for international callers by dialing (914) 495-8565; please dial-in 10 minutes before the start of the call. A replay will be available on October 27, 2017 beginning at 11:30 a.m. EDT and can be accessed by dialing (855) 859-2056 or for international callers by dialing (404) 537-3406; the conference ID is 98676473. The telephonic replay will be available until November 3, 2017. The webcast, which can be accessed by going to the Investor Relations section of AV Homes’ website at www.avhomesinc.com, is accompanied by an Investor Presentation.  A replay of the original webcast will be available shortly after the call.

 

AV Homes, Inc. is engaged in homebuilding and community development in Florida, the Carolinas and Arizona. Its principal operations are conducted in the greater Orlando, Jacksonville, Phoenix, Charlotte and Raleigh markets. The Company builds communities that serve both active adults (55 years and older) as well as

2


 

people of all ages. AV Homes common shares trade on NASDAQ under the symbol AVHI. For more information, visit www.avhomesinc.com.

This news release, the conference call, webcast and other related items contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward looking statements, which include references to our outlook for 2017, involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: the cyclical nature of the homebuilding industry and its dependence on broader economic conditions; availability and suitability of undeveloped land and improved lots; our ability to develop communities within expected timeframes; increases in interest rates and availability of mortgage financing; the prices and supply of building materials; the availability and skill of subcontractors; competition for home buyers, properties, financing, raw materials and skilled labor; our ability to access sufficient capital; our ability to generate sufficient cash to service our indebtedness; terms of our financing documents that may restrict our operations and corporate actions; fluctuations in interest rates; our current level of indebtedness and potential need for additional financing; our ability to purchase outstanding notes upon certain fundamental changes; our ability to obtain letters of credit and surety bonds; cancellations of home sale orders; the geographic concentration of our operations; inflation affecting homebuilding costs or deflation affecting declines in spending and borrowing levels; our ability to successfully integrate acquired businesses and recognize anticipated benefits; elimination or reduction of tax benefits associated with home ownership; warranty and construction defect claims; health and safety incidents in homebuilding activities; the seasonal nature of our business; impacts of weather conditions and natural disasters; resource shortages and rate fluctuations; value and costs related to our land and lot inventory; overall market supply and demand for new homes; our ability to recover our costs in the event of reduced home sales; conflicts of interest involving our largest stockholder; contractual restrictions under a stockholders agreement with our largest stockholder; dependence on our senior management; effect of our expansion efforts on our cash flows and profitability; effects of government regulation of development and homebuilding projects; development liabilities that may impose payment obligations on us; our ability to utilize our deferred income tax asset; impact of environmental changes and governmental actions in response to environmental changes; dependence on digital technologies and related cyber risks; future sales or dilution of our equity; impairment of intangible assets; and other factors described in our most recent Annual Report on Form 10-K for and our other filings with the Securities and Exchange Commission, which filings are available on www.sec.gov.  Forward-looking statements are based on the expectations, estimates, or projections of management as of the date of this news release, the conference call, the Investor Presentation and the webcast. AV Homes disclaims any intention or obligation to update or revise any forward-looking statements to reflect subsequent events and circumstances, except to the extent required by applicable law.

 

 

Investor Contact:

 

Mike Burnett

EVP, Chief Financial Officer

480-214-7408

m.burnett@avhomesinc.com

 

 

 

3


 

AV HOMES, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Operations and Comprehensive Income

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

    

2017

    

2016

    

2017

    

2016

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Homebuilding

 

$

201,724

 

$

201,821

 

$

547,268

 

$

507,659

 

Amenity and other

 

 

3,875

 

 

3,315

 

 

12,637

 

 

8,834

 

Land sales

 

 

140

 

 

291

 

 

2,576

 

 

1,120

 

Total revenues

 

 

205,739

 

 

205,427

 

 

562,481

 

 

517,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Homebuilding cost of revenue

 

 

168,555

 

 

163,911

 

 

454,020

 

 

414,290

 

Amenity and other

 

 

3,167

 

 

3,101

 

 

11,063

 

 

8,057

 

Land sales

 

 

124

 

 

295

 

 

1,286

 

 

685

 

Total real estate expenses

 

 

171,846

 

 

167,307

 

 

466,369

 

 

423,032

 

Selling, general and administrative expenses

 

 

27,085

 

 

25,484

 

 

76,470

 

 

71,639

 

Interest income and other

 

 

(407)

 

 

 —

 

 

(665)

 

 

(1)

 

Interest expense

 

 

2,625

 

 

701

 

 

7,147

 

 

2,853

 

Loss on extinguishment of debt

 

 

6,939

 

 

 —

 

 

9,872

 

 

 —

 

Total expenses

 

 

208,088

 

 

193,492

 

 

559,193

 

 

497,523

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

(2,349)

 

 

11,935

 

 

3,288

 

 

20,090

 

Income tax expense (benefit)

 

 

(872)

 

 

38

 

 

1,679

 

 

(109,959)

 

Net income (loss) and comprehensive income (loss)

 

$

(1,477)

 

$

11,897

 

$

1,609

 

$

130,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

(0.07)

 

$

0.53

 

$

0.07

 

$

5.81

 

Basic weighted average shares outstanding

 

 

22,504

 

 

22,416

 

 

22,487

 

 

22,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings (loss) per share

 

$

(0.07)

 

$

0.49

 

$

0.07

 

$

5.02

 

Diluted weighted average shares outstanding

 

 

22,504

 

 

26,654

 

 

22,674

 

 

26,606

 

4


 

AV HOMES, INC. AND SUBSIDIARIES

Unaudited Consolidated Balance Sheets

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

    

2017

    

2016

    

Assets

 

(unaudited)

 

 

 

 

Cash and cash equivalents

 

$

169,332

 

$

67,792

 

Restricted cash

 

 

1,182

 

 

1,231

 

Receivables

 

 

8,016

 

 

10,827

 

Land and other inventories

 

 

679,895

 

 

584,408

 

Property and equipment, net

 

 

33,209

 

 

33,680

 

Prepaid expenses and other assets

 

 

12,664

 

 

12,753

 

Deferred tax assets, net

 

 

108,734

 

 

110,257

 

Goodwill

 

 

30,003

 

 

19,285

 

Total assets

 

$

1,043,035

 

$

840,233

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Accounts payable

 

$

37,223

 

$

37,387

 

Accrued and other liabilities

 

 

32,639

 

 

34,298

 

Customer deposits

 

 

14,894

 

 

9,979

 

Estimated development liability

 

 

31,700

 

 

32,102

 

Senior debt, net

 

 

471,644

 

 

275,660

 

Total liabilities

 

 

588,100

 

 

389,426

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

Common stock, par value $1 per share

 

 

22,567

 

 

22,624

 

Additional paid-in capital

 

 

404,187

 

 

401,558

 

Retained earnings

 

 

31,200

 

 

29,644

 

 

 

 

457,954

 

 

453,826

 

Treasury stock

 

 

(3,019)

 

 

(3,019)

 

Total stockholders’ equity

 

 

454,935

 

 

450,807

 

Total liabilities and stockholders’ equity

 

$

1,043,035

 

$

840,233

 

 

5


 

The following table provides a comparison of certain financial data related to our operations for the three and nine months ended September 30, 2017 and 2016 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2017

    

2016

    

2017

    

2016

 

Operating income:

    

 

    

    

 

    

    

 

    

 

 

    

    

Florida

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Homebuilding

 

$

81,796

 

$

96,943

 

$

231,395

 

$

251,587

 

Amenity and other

 

 

3,875

 

 

3,315

 

 

12,637

 

 

8,834

 

Land sales

 

 

30

 

 

26

 

 

1,499

 

 

670

 

Total revenues

 

 

85,701

 

 

100,284

 

 

245,531

 

 

261,091

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Homebuilding cost of revenue

 

 

64,739

 

 

74,872

 

 

183,373

 

 

196,045

 

Homebuilding selling, general and administrative

 

 

9,837

 

 

12,189

 

 

28,241

 

 

33,374

 

Amenity and other

 

 

3,145

 

 

3,075

 

 

11,000

 

 

7,978

 

Land sales

 

 

14

 

 

 6

 

 

210

 

 

225

 

Segment operating income

 

$

7,966

 

$

10,142

 

$

22,707

 

$

23,469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carolinas

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Homebuilding

 

$

84,893

 

$

62,864

 

$

214,255

 

$

151,817

 

Land sales

 

 

110

 

 

265

 

 

892

 

 

265

 

Total revenues

 

 

85,003

 

 

63,129

 

 

215,147

 

 

152,082

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Homebuilding cost of revenue

 

 

74,376

 

 

53,803

 

 

184,557

 

 

130,573

 

Homebuilding selling, general and administrative

 

 

8,791

 

 

5,744

 

 

22,954

 

 

15,525

 

Land sales

 

 

110

 

 

289

 

 

896

 

 

289

 

Segment operating income

 

$

1,726

 

$

3,293

 

$

6,740

 

$

5,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Arizona

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Homebuilding

 

$

35,035

 

$

42,014

 

$

101,618

 

$

104,255

 

Land sales

 

 

 —

 

 

 —

 

 

185

 

 

185

 

Total revenues

 

 

35,035

 

 

42,014

 

 

101,803

 

 

104,440

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Homebuilding cost of revenue

 

 

29,440

 

 

35,236

 

 

86,090

 

 

87,672

 

Homebuilding selling, general and administrative

 

 

3,797

 

 

3,854

 

 

10,950

 

 

10,773

 

Amenity and other

 

 

22

 

 

26

 

 

63

 

 

79

 

Land sales

 

 

 —

 

 

 —

 

 

180

 

 

171

 

Segment operating income

 

$

1,776

 

$

2,898

 

$

4,520

 

$

5,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

11,468

 

$

16,333

 

$

33,967

 

$

34,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income and other

 

 

407

 

 

 —

 

 

665

 

 

 1

 

Corporate general and administrative expenses

 

 

(4,660)

 

 

(3,697)

 

 

(14,325)

 

 

(11,967)

 

Loss on extinguishment of debt

 

 

(6,939)

 

 

 —

 

 

(9,872)

 

 

 —

 

Interest expense

 

 

(2,625)

 

 

(701)

 

 

(7,147)

 

 

(2,853)

 

Income (loss) before income taxes

 

 

(2,349)

 

 

11,935

 

 

3,288

 

 

20,090

 

Income tax expense (benefit)

 

 

(872)

 

 

38

 

 

1,679

 

 

(109,959)

 

Net income (loss)

 

$

(1,477)

 

$

11,897

 

$

1,609

 

$

130,049

 

 

6


 

Data from closings for the Florida, Carolinas and Arizona segments for the three and nine months ended September 30, 2017 and 2016 is summarized as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

 

    

Average

 

 

 

Number

 

 

 

 

Price

 

For the three months ended September 30,

 

of Units

 

Revenues

 

Per Unit

 

2017

 

 

 

 

 

 

 

 

 

Florida

 

279

 

$

81,796

 

$

293

 

Carolinas

 

227

 

 

84,893

 

 

374

 

Arizona

 

102

 

 

35,035

 

 

343

 

Total

 

608

 

$

201,724

 

 

332

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

Florida

 

340

 

$

96,943

 

$

285

 

Carolinas

 

166

 

 

62,864

 

 

379

 

Arizona

 

129

 

 

42,014

 

 

326

 

Total

 

635

 

$

201,821

 

 

318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

 

    

Average

 

 

 

Number

 

 

 

 

Price

 

For the nine months ended September 30,

 

 of Units 

 

Revenues

 

Per Unit

 

2017

 

 

 

 

 

 

 

 

 

Florida

 

794

 

$

231,395

 

$

291

 

Carolinas

 

569

 

 

214,255

 

 

377

 

Arizona

 

302

 

 

101,618

 

 

336

 

Total

 

1,665

 

$

547,268

 

 

329

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

Florida

 

904

 

$

251,587

 

$

278

 

Carolinas

 

413

 

 

151,817

 

 

368

 

Arizona

 

340

 

 

104,255

 

 

307

 

Total

 

1,657

 

$

507,659

 

 

306

 

 

7


 

Data from contracts signed for the Florida, Carolinas and Arizona segments for the three and nine months ended September 30, 2017 and 2016 is summarized as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Gross

    

 

    

    

    

 

 

    

 

 

 

 

Number

 

 

 

Contracts

 

 

 

 

Average

 

 

 

of Contracts

 

 

 

Signed, Net of 

 

Dollar

 

Price Per

 

For the three months ended September 30,

 

Signed

 

Cancellations

 

Cancellations

 

Value

 

Unit

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

 

271

 

(25)

 

246

 

$

73,070

 

$

297

 

Carolinas

 

225

 

(32)

 

193

 

 

69,357

 

 

359

 

Arizona

 

132

 

(20)

 

112

 

 

39,607

 

 

354

 

Total

 

628

 

(77)

 

551

 

$

182,034

 

 

330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

 

373

 

(68)

 

305

 

$

89,076

 

$

292

 

Carolinas

 

191

 

(20)

 

171

 

 

64,457

 

 

377

 

Arizona

 

125

 

(29)

 

96

 

 

31,896

 

 

332

 

Total

 

689

 

(117)

 

572

 

$

185,429

 

 

324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Gross

    

 

    

    

    

 

 

    

 

 

 

 

Number

 

 

 

Contracts

 

 

 

 

Average

 

 

 

of Contracts

 

 

 

Signed, Net of 

 

Dollar

 

Price Per

 

For the nine months ended September 30,

 

Signed

 

Cancellations

 

Cancellations

 

Value

 

Unit

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

 

1,078

 

(100)

 

978

 

$

286,905

 

$

293

 

Carolinas

 

666

 

(81)

 

585

 

 

216,440

 

 

370

 

Arizona

 

414

 

(71)

 

343

 

 

117,173

 

 

342

 

Total

 

2,158

 

(252)

 

1,906

 

$

620,518

 

 

326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

 

1,245

 

(201)

 

1,044

 

$

294,413

 

$

282

 

Carolinas

 

591

 

(53)

 

538

 

 

200,827

 

 

373

 

Arizona

 

465

 

(108)

 

357

 

 

113,427

 

 

318

 

Total

 

2,301

 

(362)

 

1,939

 

$

608,667

 

 

314

 

 

Backlog for the Florida, Carolinas and Arizona segments as of September 30, 2017 and 2016 is summarized as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

    

Number

    

Dollar

    

 Price

 

As of September 30,

 

of Units

 

Volume

 

Per Unit

 

2017

 

 

 

 

 

 

 

 

 

Florida

 

526

 

$

157,054

 

$

299

 

Carolinas

 

277

 

 

103,152

 

 

372

 

Arizona

 

210

 

 

72,967

 

 

347

 

Total

 

1,013

 

$

333,173

 

 

329

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

 

 

Florida

 

556

 

$

160,007

 

$

288

 

Carolinas

 

275

 

 

105,302

 

 

383

 

Arizona

 

250

 

 

81,834

 

 

327

 

Total

 

1,081

 

$

347,143

 

 

321

 

 

8


 

AV HOMES, INC. AND SUBSIDIARIES

Unaudited Supplemental Information

(in thousands)

 

The following table represents interest incurred, interest capitalized, and interest expense for the three and nine months ended September 30, 2017 and 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2017

    

2016

    

2017

    

2016

 

Interest incurred

    

$

8,523

 

$

6,483

 

$

24,046

 

$

19,873

 

Interest capitalized

 

 

(5,898)

 

 

(5,782)

 

 

(16,899)

 

 

(17,020)

 

Interest expense

 

$

2,625

 

$

701

 

$

7,147

 

$

2,853

 

 

The following table represents depreciation and amortization expense and the amortization of previously capitalized interest for the three and nine months ended September 30, 2017 and 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2017

 

2016

    

2017

 

2016

 

Depreciation and amortization (1)

    

$

1,055

 

$

910

 

$

2,971

 

$

2,592

 

Amortization of previously capitalized interest

 

 

5,344

 

 

5,492

 

 

15,274

 

 

14,013

 

 

(1) Depreciation and amortization does not include the amortization of debt issuance costs, which is recorded in interest expense.

 

The following table represents a reconciliation of the net income (loss) and weighted average shares outstanding for the calculation of basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2017 and 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2017

 

2016

    

2017

 

2016

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss)

 

$

(1,477)

 

$

11,897

 

$

1,609

 

$

130,049

 

Effect of dilutive securities

 

 

 —

 

 

1,201

 

 

 —

 

 

3,600

 

Diluted net income (loss)

 

$

(1,477)

 

$

13,098

 

$

1,609

 

$

133,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

22,504

 

 

22,416

 

 

22,487

 

 

22,403

 

Effect of dilutive securities

 

 

 —

 

 

4,238

 

 

187

 

 

4,203

 

Diluted weighted average shares outstanding

 

 

22,504

 

 

26,654

 

 

22,674

 

 

26,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

(0.07)

 

$

0.53

 

$

0.07

 

$

5.81

 

Diluted earnings (loss) per share

 

$

(0.07)

 

$

0.49

 

$

0.07

 

$

5.02

 

 

9